Q: We are selling a home with a contract for deed and have a question about floreclosure.
I understand that in Oklahoma we would have to file a lawsuit to foreclose. If a judgment is granted in our favor as sellers, does the property have to be sold at auction or does that give us the right to retake possession?
A:
You are correct. A Contract for Deed is actually treated as a deed to the purchaser and a mortgage back to the seller. Because it gives the purchaser an interest in land the mortgage (contract for deed balance) would have to be foreclosed and sold at sheriff's sale. If it sells for more than what is owed the purchaser is entitled to that amount. If it sells for less than is owed you could be entitled to a deficiency judgment for the balance. You could bid on the property at the sheriff's sale along with any other interested party.
--A contract for deed is not for anybody who is unwilling to go through with the foreclosure process.
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